Renting in Dubai is more than looking for a townhouse at a premium location or finding the best balcony view. The downside comes in the form of Rental disputes in Dubai. RERA has some strict tenancy guidelines. Breach of these laws may result in a rental dispute between a landlord and a tenant.
Here is the complete guide to rental disputes in Dubai and how to resolve them.
Types of Rental Disputes in Dubai
Both tenants and landlords have a legal right to dispute against breach of tenancy laws and the lease agreement. The Real Estate Regulatory Agency (RERA) safeguards the rights of landlords and tenants through laws and regulations.
Let’s discuss the types of rental disputes in light of tenancy guidelines set by RERA:
1. Rent Issues
Failure to Pay Rent
A common rental dispute occurs when a tenant fails to pay rent on time. A Landlord has to give a 30-day notice to clear the pending dues. Besides, the landlord reserves the right to evict the tenancy contract before expiry as per Article (25) of Law No. (23) of 2007, later amended by Law No. (33) of 2008.
Unfair Increase in Rent
A landlord has to inform about rent increases 90 days before the end of the Lease Agreement. As per Article (1) of Decree No. (43) of 2013, there is a certain set of rules for rent increases. A landlord can only increase the rent if the property’s rental value is less than similar units.
The percentage of rent increase varies from 5% to 40% depending on the house value compared to similar units. A tenant has the right to dispute unfair rent increases. Use the RERA Rental Calculator or consult a legal professional for the best advice.
2. Property Condition
Another rental dispute is breaching Article (15) of Law No. (26) of 2007 amended by Law No. (33) of 2008. A landlord is only permitted to rent out a property that is in a proper condition without any form of defects. This ensures the tenant faces no issues while residing in the property.
3. Property Maintenance
Maintenance Responsibility
As per Article (16) of Law No. (26) of 2007, property maintenance is the landlord’s responsibility. A rental dispute is when a landlord fails to address the damage or repair issues despite being notified by the tenant. A tenant is, however, responsible for routine maintenance.
Maintenance Permission
Another dispute arises when a tenant renovates or changes a part of the property without the landlord’s permission. This dispute is breaching Article (19) of Law No. (26) of 2007. A tenant must ask for written permission from the landlord for any renovation or repairs.
3. Security Deposit
Article (20) of Law No. (26) of 2007 allows landlords to request a security deposit in advance from a tenant. However, landlords must refund the security deposit upon the expiry of a lease agreement. Disputes such as unfair deductions or refund delays can be legally challenged.
4. Restriction to Use Property and Privacy
A landlord cannot trouble the tenant as per Article (34) of Law No. (26) of 2007. Disputes arise when a landlord breaches the privacy guidelines set in the tenancy contract. Besides, landlords are not permitted to restrict the tenant from amenities in the property as mentioned in the agreement.
5. Eviction
Before Lease Expiry
A rental dispute concerning wrong evictions can also be challenged. Article (25) of Law No. (33) of 2008 permits eviction before expiry only for the following reasons:
- Unpaid rent
- A tenant subletting any part of the property without approval
- Use of property for any illegal work
- Unauthorised changes to a property
- Damaging a property
After Lease Expiry
If a landlord wishes to discontinue the lease agreement, there must be a valid reason. Otherwise, a tenant has the right to dispute. Article (25) of Law No. (33) of 2008 outlines the valid reasons to evict the renewal. These include:
- Demolishment or reconstruction of property in which a 12-month notice is required.
- The owner wants to hand over the property to first-degree relatives or use the property for his purpose.
- Selling the property.
For both cases, a landlord is bound to inform a tenant at least 90 days before the end of a tenancy agreement. Failure to do so can result in legal notice.
6. Returning the Property
Another type of rental dispute is when the tenants breach Article (21) of Law No. (26) of 2007. This states that a tenant must legally hand over the property in its pristine condition after the contract expires, except for normal damage or any big defect outside their control.
How to Avoid and Resolve Rental Disputes in Dubai?
Disputes are common in lease agreements, but they are preventable. Besides, it is important to resolve them on time to avoid future issues. Here are some ways to do so:
1. Transparency in Rental Agreements
Mentioning the clauses properly in the lease agreements solves half of the problems. This ensures a transparent relationship between a landlord and a tenant.
2. Awareness of Tenancy Laws
Knowing about the obligations and rights of landlords and tenants helps avoid any disputes. Ensure having adequate knowledge of the Dubai Tenancy Law.
3. Communication
In case of any dispute, start by openly voicing your concerns. Communication is the key to solving most of the problems.
4. Legal Advice
If the dispute gets out of control, it is best to consult a legal professional who will guide you on the best course of action. Besides, the Dubai Land Department also offers a Smart Judge service through which a person can take free legal advice before filing a case.
5. Rental Dispute Centre
When both parties cannot reach a mutual solution, the Rental Dispute Settlement Centre (RDC) comes into play. One can file a dispute by providing the necessary evidence to RDC, which in turn works to resolve the issue by finding a mutually agreeable solution.
6. Filing a Complaint
For legal concerns such as disturbance to personal life, a tenant can also file a complaint by visiting the police station.Check out our blogs for a complete guide to resolving rental disputes.
FAQs
Check out budget-friendly apartments in Dubai by applying the cost and amenities filter on Property Finder.
The landlord reserves the right to increase the rent if the rental value of the property is lower than that of similar units in the area. Here are the percentage guidelines to follow:
– A 5% increase in the rent of the real property unit is permitted when the rental value is 11-20% less than the similar units.
– A 10% increase in the rent of the real property unit is permitted when the rental value is 21-30% less than the similar units.
– A 15% increase in the rent of the real property unit is permitted when the rental value is 31-40% less than the similar units.
– A 20% increase in the rent of the real property unit is permitted when the rental value is over 40% less than the similar units.
Knowing your rights and responsibilities as a tenant or a landlord is essential for a happy renting experience. By following the RERA guidelines, one can prevent and resolve disputes efficiently.
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